Gurugram, India, May 14, 2024 (GLOBE NEWSWIRE) -- The UAE used car market is shifting into high gear, projected to reach a value of $27 billion by 2027, according to a compelling report by Ken Research. This press release, based on the report "UAE Used Car and Auto Classified Market Outlook to 2027 - A Pre-Owned Journey of Growth," explores the key trends accelerating this dynamic market and offers valuable insights for used car dealerships, online classified platforms, and financial institutions.
Growth Drivers: Fueling the Pre-Owned Market
Several key trends are paving the way for a thriving used car market in the UAE:
- Expat Influx Greases the Wheels: A booming expat population in the UAE, exceeding [percentage] of the total population, creates a significant demand for affordable transportation options. Used cars offer a cost-effective alternative to brand new vehicles.
- Shifting Ownership Preferences: A growing number of consumers in the UAE are prioritizing affordability and practicality over brand new car ownership. This shift in preferences creates a fertile ground for the used car market.
- Online Boom Drives Convenience: The increasing penetration of online classified platforms is revolutionizing the used car buying experience. These platforms offer easy access to a wide range of used car options, fostering market growth.
Interested to Know More about this Report, Request a Free Sample Report
Market Segmentation: Tailoring Strategies for Diverse Needs
The UAE's used car market can be segmented by vehicle type, price segment, and sales channel. Understanding these segments allows stakeholders to tailor their strategies and cater to a broader customer base:
- Sedans Maintain Dominance: Sedans are expected to remain the leading segment in the UAE used car market due to their affordability, fuel efficiency, and suitability for daily commutes. However, SUVs are projected to witness significant growth by 2027.
- Value Segment Drives Demand: The mid-range price segment, encompassing used cars priced between [price range], is expected to capture the largest market share due to its affordability and wider variety of options.
- Online Platforms Gain Traction: Traditional car dealerships remain a significant sales channel, but online classified platforms are experiencing rapid growth. This trend is expected to continue as consumers seek convenience and wider selection offered online.
- Financing Options Fuel Purchases: The availability of financing options plays a crucial role in driving used car sales. Collaboration between dealerships and financial institutions to offer attractive loan terms is critical for market growth.
Visit this Link :- Request for custom report
Competitive Landscape: A Marketplace in Motion
The UAE's used car market features a diverse mix of established players and emerging forces:
- Dealerships Remain Anchors: Traditional car dealerships hold a strong position in the market, offering a variety of used car options, after-sales services, and trade-in possibilities. However, they face increasing competition from online platforms.
- Online Platforms Emerge as Disruptors: Online classified platforms are disrupting the market by offering a user-friendly interface, transparent pricing, and wider selection of used cars. Strategic partnerships with dealerships can further enhance their offerings.
- New Players Enter the Fray: Emerging players, such as used car subscription services, are entering the market, offering flexible car ownership alternatives and catering to changing consumer preferences.
Recent Developments: Keeping the Market Revving
The UAE's used car market is experiencing exciting developments that will shape its future:
- Focus on Quality and Certification: A growing emphasis on quality assurance and certification programs for used cars instills greater buyer confidence and transparency in the market. This trend is expected to gain traction in the coming years.
- Data Analytics Drives Insights: Used car dealerships and online platforms are increasingly leveraging data analytics to gain valuable insights into consumer behavior, pricing trends, and market demand. This data-driven approach allows them to optimize their offerings and target specific customer segments.
- Sustainability Gains Traction: The growing environmental consciousness is leading to a rise in demand for fuel-efficient used cars. Additionally, initiatives promoting car recycling and eco-friendly dismantling practices are expected to emerge.
Request free 30 minutes analyst call
Download the full report to gain a comprehensive analysis of the UAE Used Car Market and its exciting future. This report equips you with the knowledge needed to navigate this dynamic landscape and position yourself for success in the flourishing UAE automotive industry.
Taxonomy
By Market Structure
- Organized Sector
- Unorganized Sector
By Organized Sector
- OEMs/Franchise Dealers
- Multi-Brands Dealerships
- Online Marketplaces/Classified
By Unorganized Sector
- Auction Houses
- C2C & Others
- Local Dealers
By Car Type
- SUV
- Sedan
- Hatchback
- Coupe
- Pickup Truck
- Others
By Brands
- Toyota
- Nissan
- Mitsubishi
- Hyundai
- Ford
- Chevrolet
- Kia
- Others
By Country of Origin
- Japan
- USA
- South Korea
- Germany
- China
- Others
By Region
- Ajman
- Ras Al-Khaimah
- Umm Al-Quwain
- Sharjah
- Abu Dhabi
- Fujairah
- Dubai
For More Insights On Market Intelligence, Refer To The Link Below: –
Related Reports by Ken Research: –
Malaysia Used Car Market will expand at a CAGR of 8.5% between 2022 and 2027 owing to the rising middle class and online used car platforms The boom in the number of online auto-classified platforms and the traction of the consumers towards online platforms will contribute to the inclining used car sales in the country.
France used car market was valued at USD ~ Billion in 2021, and it is expected to reach a value of USD ~ billion by 2027, registering a CAGR of ~% during the forecast period (2022 - 2027). Amid the COVID-19 pandemic-associated lockdown, the demand for used cars witnessed a halt in sales for the first half of the year 2020. However, since the second half of the year 2020, the demand for used vehicles started to pick the pace and continued until 2021.
According to Ken Research estimates, UK Used Car Industry will continue its growth phase till 2030; entry of large number of captive and classified players expected in the upcoming years owing to online presence of new emergent players, increasing smartphone & internet penetration & a growing middle class population.
According to Ken Research estimates, due to the impact of COVID-19, there has been a substantial decrease in the denominator (new car sales) while the numerator, i.e. the pre-owned car market, has been relatively stable. Turkey used car market is expected to grow at an 11.8% CAGR during 2021-2026F, driven by an increase in prices of new cars and government initiatives. The Turkish automotive industry had a foreign trade surplus of approximately $9.5 billion in 2021.
Follow Us –
LinkedIn | Instagram | Facebook | Twitter | YouTube
Contact Us:-
Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
Ankur@kenresearch.com
+91-9015378249
